Another benchmark is reached. The high-yield index is now 10% (1000 B.P.) over the ten-year treasury. The last time we saw this was in the early part of this century during the corporate bankruptcies such as Enron and Worldcom.
Sometime soon it will be time to take advantage of this spread. We need to address the liquidity crisis first...
1 comment:
How do you look at the TED Spread and LIBOR? I'm thinking they can be used much like the High Yield/10 Year treasury spread. As I look at it they are all flashing RED, saying stay away from being long the market for now. It seems that opportunity may be around the corner, but with a deep recession looming there will likely be plenty of time to wade back into the market.
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